If you resold a Taylor Swift ticket for a profit, prepare to pay taxes. Here's what to know

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Getty Images Entertainment The new IRS reporting threshold for business transactions on third-party platforms, such as Ticketmaster or

eBay

, is now a single payment of $600, down from 200 transactions worth an aggregate of more than $20,000. “

Ticket profits have always been taxable, but the new IRS reporting threshold for business transactions on third-party platforms, such as Ticketmaster or

eBay, is now a single payment of $600, down from 200 transactions worth an aggregate of more than $20,000.Taxpayers will have to prepare as the law takes effect this coming season.

“Starting at the beginning of next year, you want to make sure you know how to report this income,” said certified financial planner and enrolled agent Tommy Lucas of Florida-based Moisand Fitzgerald Tamayo.

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While the new tax reporting shouldn’t affect personal transactions, such as sharing the cost of a car ride or meal, birthday gifts or holiday gifts, many people with business transactions will be affected because of the new lower threshold, experts say.

“A ton of people are going to be confused,” said Ted Rossman, a Bankrate senior industry analyst. The friend who pays for the pizza will not count. “

Here’s how to prepare for Form 1099-K

Taxpayers who received business payments from e-commerce platforms such as Ticketmaster,

eBay, Venmo and PayPal that exceed $600 will receive Form 1099-K this tax season. Experts say that even though this is your first time receiving the form, you shouldn’t ignore it. Lucas said that the IRS had no way of knowing about resold ticket earnings before. Now, the IRS is required to be notified by these platforms and you must report. He is also a certified public accountant. He is also a certified public accountant.While this form may leave more room for error, here are four things you should do to start preparing:

Keep track of sale transactions:

As people engage in numerous Venmo and PayPal transactions, it will be paramount to keep track of them, experts say. Albert Campo of AJC Accounting Services in New Jersey, CPA, said that closing the account used to make the transactions would be difficult. If you don’t, your return could have a mistake. “Make sure to do it right the first time,” said Lucas.

Plan for taxes:

  1. If you’re expecting to owe taxes, setting aside money or making quarterly estimated tax payments is “absolutely a smart thing to do,” since you may not be withholding enough through your paycheck at work, Lucas previously told CNBC. Plan for taxes:If you expect to owe tax, Lucas said that setting money aside or making quarterly estimates tax payments are “absolutely the right thing to do” since you might not be withholding sufficient through your pay at work.